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Financial Markets and Planning

Overview

This page provides information and data on the Financial Markets and Planning sector, which is one component of the Financial Services industry, and includes financial markets operations, financial planning and financial licensing management.

Financial markets provide opportunities for Australians and overseas investors to increase their wealth. Types of financial markets include over-the-counter markets, exchange traded markets, as well as debt, and currency and commodity markets. Financial planners and advisers assist Australians to manage their wealth effectively across their lifetime. This includes setting financial objectives with clients, developing strategies to achieve these objectives, and arranging for specific plans to be executed.

Nationally recognised training for Financial Markets and Planning is delivered under the FNS – Financial Services Training Package.

Information sourced from the most recently available Skills Forecast, the Financial Services IRC’s 2019 Skills Forecast.

For information on other financial services, see the Financial Services cluster page.

All data sources are available at the end of the page.

IRC and skills forecasts

The Financial Services IRC was not required to submit an annual update to their 2019 Skills Forecast during 2020. As such, the version published in 2019 remains the most recently published Skills Forecast for this industry.

Financial markets and planning IRC’s

Employment trends

Please note: any employment projections outlined below were calculated by the Australian Bureau of Statistics prior to COVID-19.

Employment snapshot

Due to the absence of detailed employment trend information for this sector as a whole, two relevant occupations have been used in order to assess employment levels, Financial Brokers and Financial Investment Advisers and Managers.

The employment level for Financial Brokers grew between overall between 2000 and 2020. Employment peaked in 2019 at 36,800 before declining to 34,200 in 2020. It is projected to increase to 35,500 by 2024. The trend for Financial Investment Advisers and Managers was variable between 2000 and 2020. Employment peaked in 2020 at 55,300, which is projected to increase to 55,500 by 2024.

Training trends

Training snapshot

Program enrolments in Financial Markets and Planning-related qualifications fell each year between 2015 and 2019. Enrolments peaked in 2015 at approximately 17,800 and in 2019 there were around 4,130. Program completions fell overall between 2015 and 2019, with a slight rise in 2017. Completions peaked in 2015 at approximately 4,790 and in 2019 there were around 1,880. In 2019, all training in this sector took place at the diploma or higher level, with the most common qualification being the Diploma of Financial Planning. The majority of students in this sector had an intended occupation of Financial Investment Adviser (90%).

In 2019, the vast majority of Financial Markets and Planning-related qualifications were delivered by private training providers (95%), and most subjects were funded through domestic fee for service (79%). New South Wales and Victoria had the highest proportion of students enrolled in Financial Markets and Planning-related qualifications, at 36% and 27% respectively.

The majority of training was delivered in Victoria (56%) and New South Wales (41%).

There were insufficient enrolments in apprenticeships or traineeships to allow analysis.

For more data specific to your occupation, industry or training package, visit NCVER’s VET students by industry. If you are prompted to log in, select cancel and you will continue to be directed to the program.

For more data specific to your region visit NCVER’s Atlas of Total VET.

If you are interested in extracting NCVER data to construct tables with data relevant to you, sign up for a VOCSTATS account.

Industry insights

According to the Financial Services IRC’s 2019 Skills Forecast, financial planning and advice is expected to grow through increased demand from older Australians seeking financial advice in their retirement. Demographic changes will shape the financial planning and advice sector by:

  • Increasing demand for financial advice from superannuates, as growing post-retirement wealth creates a greater incentive to seek professional financial advice. The ability to assist clients through the potential emotional and psychological stress of retirement will be crucial.
  • Responding to advice in product growth areas such as ethical investments and property. Demand for ethical and responsible investments has more than quadrupled over the past three years, with 92% of Australians expecting their superannuation or other investments to be invested responsibly and ethically. The strong demand for property is driving demand for mortgage brokers and general insurers, in addition to financial advisers.

The above Skills Forecast also highlights the impact of increased regulation on the future of financial advice. New legislation has introduced higher minimum education requirements for new advisers effective 1 January 2019, and existing advisers effective 1 January 2026, with the Financial Adviser Standards and Ethics Authority (FASEA) appointed by the Minister to deliver the detail. These changes are expected to have a large impact on the financial planning sub-sector in the short to medium term. FASEA’s Education Standard sets out the following:

  • New entrants to financial advising are required to have completed an approved degree (24 subjects at AQF7), or an approved Graduate Diploma (AQF8) or approved Masters Degree (AQF9) from 1 January 2019.
  • Existing advisers with an approved degree are required to complete a Bridging Course (1 subject – the FASEA Code of Ethics at AQF8) by no later than 1 January 2026.
  • Existing advisers with a relevant degree (as defined by FASEA) are required to complete a Bridging Course (3 subjects at AQF8 and 1 FASEA approved subject) by no later than 1 January 2026. Recognition of Prior Learning (RPL) is available for up to 6 units and bridging course subjects are available.
  • Existing advisers with a non-relevant degree are required to complete an approved Graduate Diploma (7 subjects at AQF8) by no later than 1 January 2026. RPL is available for up to 6 units and bridging course subjects are available.
  • Existing advisers with no degree are required to complete an approved Graduate Diploma (8 subjects at AQF8) OR another approved qualification (Bachelor Degree (AQF7) or Masters Degree (AQF9)) by no later than 1 January 2026. RPL is available for up to 6 units and bridging course subjects are available.

The Chartered Accountants Australia and New Zealand (CA ANZ) report The Future of Advice: Overcoming Challenges to Deliver Great Consumer Outcomes, argues that in a world of rapid demographic, technology and regulatory change, the future is positive for financial advisers. Expert advice is the cornerstone of effective decision-making. Given the impacts of an ageing population, retirement savings, and ongoing concerns around financial literacy, now more than ever everyday Australians need access to affordable, quality advice.

Key findings of the report include:

  • There will be an increasing number of older and wealthier people seeking financial advice in the future.
  • Technology will play a major role in advice, but many people still want face-to-face contact and a trusted adviser.
  • People want increasingly personalised advice that is more transparent. Advice in this form is more likely to increase trust in the adviser as well as lead to good consumer outcomes.

Links and resources

Below is a list of industry-relevant research, organisations and associations. Hyperlinks have been included where available.

Relevant research

Education Standard Commenced 1 January 2019 – Financial Adviser Standards and Ethics Authority (FASEA)

The Future of Advice: Overcoming Challenges to Deliver Great Consumer Outcomes – Chartered Accountants Australia and New Zealand (CA ANZ)

 

Industry associations and advisory bodies

Association of Financial Advisers (AFA)

Association of Independently Owned Financial Professionals (AIOFP)

Australian Financial Markets Association (AFMA)

Financial Planning Association of Australia (FPA)

Independent Financial Advisers Australia (IFA-AUST)

Profession of Independent Financial Advisers (PIFA)

 

Employee associations

Finance Sector Union (FSU)

Data sources and notes

Department of Employment 2020, Employment Projections, available from the Labour Market Information Portal

  • by ANZSCO, selected occupations, employment projections to May 2024
    • Financial Brokers
    • Financial Investment Advisers and Managers.

Australian Bureau of Statistics 2020, Employed persons by occupation unit group of main job (ANZSCO), Sex, State and Territory, August 1986 onwards, 6291.0.55.003 - EQ08, viewed 1 August 2020 https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003May%202020?OpenDocument

  • Employed total by ANZSCO 4 digit Financial Brokers, and Financial Investments Advisers and Managers, 2000 to 2020, May Quarter.

Training data has been extracted from the National VET Provider Collection, Total VET Students and Courses from the following training package or qualifications:

  • FNS Financial Services Training Package
    • FNS41110 - Certificate IV in Financial Markets Operations
    • FNS41115 - Certificate IV in Financial Markets Operations
    • FNS51011 - Diploma of Financial Markets
    • FNS51015 - Diploma of Financial Markets
    • FNS50610 - Diploma of Financial Planning
    • FNS50611 - Diploma of Financial Planning
    • FNS50615 - Diploma of Financial Planning
    • FNS50804 - Diploma of Financial Services (Financial Planning)
    • FNS60711 - Advanced Diploma of Financial Licensing Management
    • FNS60715 - Advanced Diploma of Financial Licensing Management
    • FNS60410 - Advanced Diploma of Financial Planning
    • FNS60415 - Advanced Diploma of Financial Planning
    • FNS60404 - Advanced Diploma of Financial Services (Financial Planning).

This includes superseded qualifications and training packages.

Data covers a range of selected student and training characteristics in the following categories and years:

  • 2015 to 2019 program enrolments
  • 2015 to 2019 program completions.

Total VET students and courses data is reported for the calendar year. Program enrolments are the qualifications, courses and skill-sets in which students are enrolled in a given period. For students enrolled in multiple programs, all programs are counted. Program completion indicates that a student has completed a structured and integrated program of education or training. Location data uses student residence. Subject enrolment is registration of a student at a training delivery location for the purpose of undertaking a module, unit of competency or subject. For more information on the terms and definitions, please refer to the Total VET students and courses: terms and definitions document.

Low counts (less than 5) are not reported to protect client confidentiality.

Percentages are rounded to one decimal place. This can lead to situations where the total sum of proportions in a chart may not add up to exactly 100%.

FNS Financial Services Training Package apprentice and trainee data has been extracted from the National Apprentice and Trainee Collection, including:

  • 2010 to 2019 commencements
  • 2010 to 2019 completions
  • 2019 apprentices and trainees in-training October to December 2019 collection, by qualification and state and territory of data submitter.

Priority skills data have been extracted from the Financial Services IRC’s 2019 Skills Forecast.

Updated: 23 Nov 2020
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